Wednesday 6 June 2012

RHB Capital - 63.3% subscription rate for latest DRP


RHB Capital (RHB Cap) announced it will be issuing 30.9mil new RHB Cap shares pursuant to the dividend reinvestment plan (DRP) applied to the final dividend for FY11. 

This is in relation to the final dividend for FY11 which was declared on 28 February 2012.

The final dividend comprises a gross dividend of 11.82 sen/share less 25% tax (net dividend: 8.87 sen/share) and a single-tier dividend of 5.59 sen/share. 

The issue price for the DRP was set at RM6.52/share and was computed based on the volume-weighted average market price for the five market days up to and including 25 April 2012 prior to the price fixing date of RM7.41, minus the gross dividend per share of 17.41 sen and applying approximately a 10% discount equivalent to RM0.72.

The new shares represent approximately 63.29% of the total number of 48.9mil new RHB Cap shares that would have been issued pursuant to the DRP. 

There are no surprises in the DRP take-up or subscription rate, which is in line with historical trend. The previous tranche of  DRP issued (in relation to interim FY11)’s subscription rate was 63.2% (see Table 2 in following page).  

The number of new shares will lead to 1.4% increase in total number of shares issued. 

We maintain our positive stance on RHB Cap. We foresee the following rerating catalysts for RHB Cap (a) stabilisation in gross impaired loans; (b) better-than-expected loan loss provision; (c) higher fee income from its investment bank, which will provide evidence of revenue synergies for its proposed OSK acquisition.     

Source: AmeSecurites

No comments:

Post a Comment